Presented by: A BRAMS C ARSHARING A DVISORS. Why CarSharing? Why Now? “For over 26 years, ACG has...

Presented by: ABRAMS CARSHARING ADVISORS

Why CarSharing? Why Now?

“For over 26 years, ACG has remained in the forefront of the evolution of the auto rental and transportation industries. We have worked with our clients to look beyond the horizon, to stay ahead of the curve, to challenge existing business models, and adjust to changes in consumer behavior and market dynamics. CarSharing's time has come as it taps into long-term cultural, environmental, economic, and life style shifts, and is poised to become a multi-billion dollar global industry. ACA has been formed to assist existing and new businesses, corporate fleet operators, and others who have short-term transportation needs, to exploit the enormous value proposition offered by CarSharing.” Neil Abrams President and Founder of Abrams Consulting Group

"Be Ahead Of The Curve!"

ABRAMS CARSHARING ADVISORS

CarSharing is a membership based organization open to the public.

Fully automated platform where members and businesses have access to vehicles 24/7 through the use of the internet, wireless and GPS technology.

The CarShare technology enables individuals to drive a car on an as-need basis, paying only for the time and mileage they reserve.

Vehicles are located at unstaffed self-service locations.

The CarShare Operator (“CSO) provides the gas, insurance, parking and maintenance.

What is CarSharing?


Although CarSharing dates back to the 1940s in Europe, more successful CarSharing programs launched in Germany and Switzerland in the mid-1980s.

Modern day CarSharing began in North America in the mid-1990s. As of 2010, CarSharing as an industry has more than 450,700 members served by over 10,194 vehicle throughout North America

There are over 1 million CarShare users worldwide

History of CarSharing


CarShare Growth


Join or register on-line. Once application is approved the member is given a smart card.

Member can now reserve any vehicle in the fleet.

The CarShare member use their smart card or cell phone to access the vehicle

How Does CarSharing work?


Reserve on-line or phone. The data is wirelessly transmitted to the hardware installed in the vehicle. The

vehicle now knows the date and time of your reservation. The CarShare technology logs vital driver and vehicle usage. That information

is transmitted back to the CSO server. The CarShare technology automatically process the member’s usage and bills

their credit card.

How Does CarShare Technology Work?


Policies & Procedures

Only CarShare members are authorized to operate the vehicles

Vehicles must be returned to the same locations and parking spaces

Members are expected to return the vehicles on time or are subject to penalties

No Smoking in any CarShare Vehicles

Members are encouraged to pick-up after themselves. Trash in – Trash out

CSOs are responsible for:

CSO pays for gas. A gas card is assigned to each vehicle. Members are required to fill-up the tank when it reaches below a ¼ of a tank.

CSO provide insurance coverage up to the minimum state-mandate, which vary by state and CSO.

CSO provides assigned parking

CSO are responsible for all vehicle maintenance and service. This includes but not limited to scheduled cleanings and PMs.

Basic Member Rules:


CarSharing addresses Social and Economic issues

Social & Environmental Benefits

“The day will come when the notion of car ownership becomes antiquated.” William Clay Ford Jr.,

Chair, Ford Motor Company Ltd.

Environmental Benefits

o Complements mass-transit use

o Reduces congestion

o Reduces parking demands

o Reduces fossil fuel consumption

o Reduces greenhouse gas emissions and air pollution

o LEED accredited program


Social & Environmental Benefits

CarShare Vehicle: Approx. 45 -60 members share 1 CarShare vehicle and 1

parking space


parking space

We all share the same

vehicle . . .

We all share the same

vehicle . . .


parking space

Studies have shown 1 CarShare vehicle:

• Removes 9-13 private vehicles off the road• Eliminates the need for 11 to 26 parking spaces• 26% of CarShare members sold their personal vehicles • 53% avoided purchasing a vehicle

Sources: *Elliot Martin, PhDPost-Doctoral Research Engineer, Transportation Sustainability Research Center University of California, Berkeley *Susan A. Shaheen, PhDResearch Associate, Mineta Institute Honda Distinguished Scholar in Transportation, University of California, Davis, & Acting Co-Director, Transportation Sustainability Research Center (TSRC) University of California, Berkeley NYC Planning Board Amendment of 2010

XXXXXXX

X


CarShare Performance Metrics

Member to car ratio 45 – 60 drivers to 1 CarShare vehicle & 1

parking space

Sources: Shaheen, Cohen, and Chung. TRB 09-3688 NORTH AMERICAN CARSHARING: A TEN-YEAR RETROSPECTIVE


Economic Benefits

“The day will come when the notion of car ownership becomes antiquated.” William Clay Ford Jr.,

Chair, Ford Motor Company Ltd.

Car Owner CarShare Member

Car payment $288 included

Finance charges $67 included

Insurance $84 included

Gas $100 included

License, registration & tax

$49 included

Maintenance $44 included

Parking $150 included

Total: $782/mo *Monthly cost based on

small – mid-size car

$144/mo avg. *A couple trips each week (6 two hour trips & 2 four-

hour trips)

Sources: Data based on 2010 AAA study of average driving cost Zipcar www.zipcar.com

• Alternative to car ownership• All inclusive program:

• Includes gas• Includes insurance• Includes maintenance • Includes parking

• Pay only for what you use


Target Markets


Target Markets

Sources:City Data.com / Shaheen, Cohen, and Chung. TRB 09-3688 NORTH AMERICAN CARSHARING: A TEN-YEAR RETROSPECTIVE

83% of CarShare members are between the age of 21 - 45

83% of CarShare members are between the age of 21 - 45

Minimal Start-up Cost Fully Automated System

Paperless & Keyless Automated Reservation & Billing

24/7 Self-Service Operation (No Rental Counter or Location) Real Time Fleet Management Information & Control High Utilization

Based on 24 Hours Hourly & Daily Rentals 35% - 45% Utilization Average RPU of $1,500 - $1,700 per vehicle

CarShare’s Value Proposition?


Manageable and Controllable Start-up Cost

The Cost Factor

✓

✓

✓

✓

You have the fleet

You have the fleet

CarShare is not labor

intensive!

CarShare is not labor

intensive!

What do you need to Start

a CSO?

What do you need to Start

a CSO?

Need to purchase or

lease the CarShare

Technology

Need to purchase or

lease the CarShare

Technology

Need to develop your

CarShare website

Need to develop your

CarShare website

The main cost component of a CarShare business are:

Fleet

Insurance

Personnel

CarShare Technology

Website Development ABRAMS CARSHARING

ADVISORS

24/7 Self-Service Operation Hourly or Daily Reservations – (prefer more hourly use) Average Utilization of 35% - 45%

Based on 24 Hours

Average RPU per month of $1,500 - $1,700 per vehicle

CarShare Performance Metrics

8.14

$45.78

$56.35

41.8%

$1,691


Retail Alternative to Car Ownership

Corporate Business to Business Corporate Fleets Employee Benefit

Governments & Municipalities Solution for Parking Issues & Demands Environmental Policies Fleet Management Solution

Transportation Agencies Compliments Mass-Transit Fleet Management Solution

Institutions Educational

Real Estate Developers Tenant Amenity LEED Accredited Program

Market Segments


*Transportation trends. Smart Para-Transit Study

New Modes of CarSharing to Increase Revenue Potential in North America and Europe to 7 billion dollars by 2016

88% of North America’s CarShare Members are in the United States across 26 CarShare Programs

5 year Forecast


Hertz - Connect by Hertz Global CarShare Operation

Enterprise - WeCar Operates in North America

U-Haul – U-CarShare U.S. Operations

Avis – Okigo European Market (France)

Several Independent / Franchise Car Rental Non-profits

Car Rental / CarShare Operators


Is this a business for you?

CarSharing


Existing infrastructure an overall back office

Recognizable brand

Existing customer base

Scalable and controllable start-up cost

Sustainable demand growth

Immature and unsaturated competitive field

High RPU

Maximum ROI

Contact Us

For more information about ACA and Car/FleetShare programs, please contact us at:

ABRAMS CARSHARING ADVISORSA DIVISION OF ABRAMS CONSULTING GROUP, INC.Corporate Office3020 Westchester AvePurchase, NY 10577P: 914.696.5100F: 914.696.5101Web: www.abramscarsharing.com

Julian EspirituP: 914.696.5100D: 914.729.0058F: 914.696.5101E-Mail: [email protected]


http://www.abramscarsharing.com/

Presented by: A BRAMS C ARSHARING A DVISORS. Why CarSharing? Why Now? “For over 26 years, ACG has...

Documents

Transcript of Presented by: A BRAMS C ARSHARING A DVISORS. Why CarSharing? Why Now? “For over 26 years, ACG has...